Has the market cooled down drastically?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Maybe it's as simple as you're priced too high. There are some homes listed at the moment (I'm looking in N. Arlington), and I just laugh at the delusion of some sellers.

Ours was based on neighborhood comps and the upgrades we had compared to the last sold house..I wouldn't say insanely priced..The house is very recently built and in a decent school district. Wouldn't people still want to come view it an open house? We went to open houses even when they were 50K over our budget just to get a feel for what a home that price had to offer when compared to the homes available in our budget.

Unless your house is at a high price point, my guess is that you overvalued your upgrades.

House is at high price point and houses in that price range in the same zipcode have been sitting on the market for 2 months and more. The last sold house was built by same builder same time frame..We paid 27K more for a large sun room upgrade (with a room beneath it), 15 K more for an expanded and upgraded kitchen (they had standard kitchen), 15K more for backing to trees, 10K more for walk-out - all these features the other house didn't have. Their additional options were a family room expansion (10K), tray ceiling (3K), hardwood stairs (3K), hardwood in one room (4K) totalling 20K which we don't have. Difference between ours and theirs 67-20=47K. We priced it 30K more since buyers won't care about how much we paid for premium lot backing to trees etc. I would say we priced it competitively, but listed at the wrong time.

There is also another 30 yr old house in nearby neighborhood, same schools, less sq.footage, kitchen upgraded, no sunroom, listed just 20K less than ours and been sitting on the market 2 months without any price reduction. We also saw another house 30yrs old, same schools, priced 30K more than ours and for sure thought anyone in the market would prefer ours over that (it has an outdated kitchen, outdated everything,tiny rooms,apartment like closet space and baths, no upgrades whatsoever). The only redeeming quality was a huge backyard and a nice porch. That has been sitting on the market too.

Like PP said, it may be just better if we pulled it off market and relisted in Jan/Feb. Forget about getting an offer..The fact that no one even showed up for an open house tells me the market has really cooled off..

The only good thing is we are not desperate to sell and can hold on till the market picks up..

A few points:

1. Yup, you could just be at a price point where houses just sit for awhile. Your realtor should be able to tell you how long houses at your price point sit.
2. You're using as comps houses that aren't selling. If you want to sell your place then you need to compare your place to stuff that have been sold at the sold price.
3. It makes sense that you're valuing backing to trees at $0. But you're valuing the upgrades at 100% what you paid. That doesn't seem competitive. Then again, on the whole valuing your upgrades at 64% what you paid might be fair.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
So you are really pretty far out where the housing stock is all thrown up new build that is not very frequently on the higher-end. The lack of density of high-end houses like yours probably means that it will sit and you will need to price it aggressively next time.

The problem we have is that most homes here are about 30yrs old, and other than a few homes that have been upgraded, many are available for 100K less. Ours is a new community smack in the middle of old homes..Obviously, we cannot sell a new home for the same price as a 30yr old home.

That's only "obvious" if people perceive your house to be substantially more valuable than the older house. That may not be the case.

Your house is fairly new, but is not a new build at this point. People who pay a premium for new probably won't value your house that same way. People may also be worried that you are moving so soon because there is a problem with the house. More generally, a lot of recent construction is pretty shoddy, meaning older houses can be better if well maintained.

Those other houses may be more accurate comps for the value of your house than you would like to admit.

I'm not sure if it's that obvious. If the 30 year old homes were well built and well maintained and you have a cheap looking low quality new build McMansion, then I'm not sure yours should be valued at $100K more. Again I'm not saying that your place is not worth $100K more than much older houses; it's just that I can definitely see scenarios where they wouldn't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
So you are really pretty far out where the housing stock is all thrown up new build that is not very frequently on the higher-end. The lack of density of high-end houses like yours probably means that it will sit and you will need to price it aggressively next time.

The problem we have is that most homes here are about 30yrs old, and other than a few homes that have been upgraded, many are available for 100K less. Ours is a new community smack in the middle of old homes..Obviously, we cannot sell a new home for the same price as a 30yr old home.

That's only "obvious" if people perceive your house to be substantially more valuable than the older house. That may not be the case.

Your house is fairly new, but is not a new build at this point. People who pay a premium for new probably won't value your house that same way. People may also be worried that you are moving so soon because there is a problem with the house. More generally, a lot of recent construction is pretty shoddy, meaning older houses can be better if well maintained.

Those other houses may be more accurate comps for the value of your house than you would like to admit.

I'm not sure if it's that obvious. If the 30 year old homes were well built and well maintained and you have a cheap looking low quality new build McMansion, then I'm not sure yours should be valued at $100K more. Again I'm not saying that your place is not worth $100K more than much older houses; it's just that I can definitely see scenarios where they wouldn't.

NP not everyone hates large new construction. Just a thought!

[Anonymous]

Anonymous wrote:
A few points:

1. Yup, you could just be at a price point where houses just sit for awhile. Your realtor should be able to tell you how long houses at your price point sit.
2. You're using as comps houses that aren't selling. If you want to sell your place then you need to compare your place to stuff that have been sold at the sold price.
3. It makes sense that you're valuing backing to trees at $0. But you're valuing the upgrades at 100% what you paid. That doesn't seem competitive. Then again, on the whole valuing your upgrades at 64% what you paid might be fair.

Yes, the 2 older homes in nearby neighborhoods haven't sold..but the newer one on our street based on which we priced ours has already sold and new owners have moved in..I think we'll just see for a few more weeks and if nothing happens relist in Feb..hopefully the market will pickup again..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
So you are really pretty far out where the housing stock is all thrown up new build that is not very frequently on the higher-end. The lack of density of high-end houses like yours probably means that it will sit and you will need to price it aggressively next time.

The problem we have is that most homes here are about 30yrs old, and other than a few homes that have been upgraded, many are available for 100K less. Ours is a new community smack in the middle of old homes..Obviously, we cannot sell a new home for the same price as a 30yr old home.

That's only "obvious" if people perceive your house to be substantially more valuable than the older house. That may not be the case.

Your house is fairly new, but is not a new build at this point. People who pay a premium for new probably won't value your house that same way. People may also be worried that you are moving so soon because there is a problem with the house. More generally, a lot of recent construction is pretty shoddy, meaning older houses can be better if well maintained.

Those other houses may be more accurate comps for the value of your house than you would like to admit.

I'm not sure if it's that obvious. If the 30 year old homes were well built and well maintained and you have a cheap looking low quality new build McMansion, then I'm not sure yours should be valued at $100K more. Again I'm not saying that your place is not worth $100K more than much older houses; it's just that I can definitely see scenarios where they wouldn't.

NP not everyone hates large new construction. Just a thought!

Sure. But most people hate shoddy construction, whether large or small. And OP leaving after such a short period is going to increase fears (fairly or not) that there are problems with the house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
So you are really pretty far out where the housing stock is all thrown up new build that is not very frequently on the higher-end. The lack of density of high-end houses like yours probably means that it will sit and you will need to price it aggressively next time.

The problem we have is that most homes here are about 30yrs old, and other than a few homes that have been upgraded, many are available for 100K less. Ours is a new community smack in the middle of old homes..Obviously, we cannot sell a new home for the same price as a 30yr old home.

The #2 Rule of Real Estate (after the #1 Rule of Location, Location, Location) is "Don't buy the most expensive home in your neighborhood."

Sounds like you have a combination of factors that are causing the problem here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
So you are really pretty far out where the housing stock is all thrown up new build that is not very frequently on the higher-end. The lack of density of high-end houses like yours probably means that it will sit and you will need to price it aggressively next time.

The problem we have is that most homes here are about 30yrs old, and other than a few homes that have been upgraded, many are available for 100K less. Ours is a new community smack in the middle of old homes..Obviously, we cannot sell a new home for the same price as a 30yr old home.

The #2 Rule of Real Estate (after the #1 Rule of Location, Location, Location) is "Don't buy the most expensive home in your neighborhood."

Sounds like you have a combination of factors that are causing the problem here.

I really really wish someone had advised us on the#2 rule..

[Anonymous]

I have a theory that two similar homes for sale in a neighborhood is bad for both of the sellers. Not sure why this is but it seems to work this way.

[Anonymous]

It's the off season. Things will pick up in the fall.

[Anonymous]

Anonymous wrote:I have a theory that two similar homes for sale in a neighborhood is bad for both of the sellers. Not sure why this is but it seems to work this way.

It makes buyers suspicious, that there's a reason everyone is trying to get out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a theory that two similar homes for sale in a neighborhood is bad for both of the sellers. Not sure why this is but it seems to work this way.

It makes buyers suspicious, that there's a reason everyone is trying to get out.

Not necessarily. The DC area is full of transients.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
So you are really pretty far out where the housing stock is all thrown up new build that is not very frequently on the higher-end. The lack of density of high-end houses like yours probably means that it will sit and you will need to price it aggressively next time.

The problem we have is that most homes here are about 30yrs old, and other than a few homes that have been upgraded, many are available for 100K less. Ours is a new community smack in the middle of old homes..Obviously, we cannot sell a new home for the same price as a 30yr old home.

That's only "obvious" if people perceive your house to be substantially more valuable than the older house. That may not be the case.

Your house is fairly new, but is not a new build at this point. People who pay a premium for new probably won't value your house that same way. People may also be worried that you are moving so soon because there is a problem with the house. More generally, a lot of recent construction is pretty shoddy, meaning older houses can be better if well maintained.

Those other houses may be more accurate comps for the value of your house than you would like to admit.

I'm not sure if it's that obvious. If the 30 year old homes were well built and well maintained and you have a cheap looking low quality new build McMansion, then I'm not sure yours should be valued at $100K more. Again I'm not saying that your place is not worth $100K more than much older houses; it's just that I can definitely see scenarios where they wouldn't.

NP not everyone hates large new construction. Just a thought!

Sure. But most people hate shoddy construction, whether large or small. And OP leaving after such a short period is going to increase fears (fairly or not) that there are problems with the house.

AS someone else pointed out, this area is full of transients. Most homes selling where I live have all been built less than 5 years ago. We are moving from our townhome after 2-3 years because we want more space. As I'm looking at other properties being sold after a few years, I don't immediately think something is wrong with the home as much as the people are being transferred for jobs, moving away, divorce etc...

[Anonymous]

This is vacation time in the DC area and it's also the time when the leftovers from the spring market are being reduced in price.

[Anonymous]

Comps are what houses have sold for, not what they are priced at.

[Anonymous]

I would love to buy the older, unrenovated home for $100K less. In your home, you got to pick your finishes. If I spend $100K less on the structure, I can afford to pick my finishes--just like you did.